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AMMAN — The government will announce the international companies that qualify to finance and implement the first phase of the Red Sea-Dead Sea Water Conveyance Project in the course of this year, a senior official said on Tuesday.

The government will cooperate with the World Bank to secure part of the project’s cost, while the rest will be paid by the selected private companies, which will implement the scheme on a build-operate-transfer formula, Minister of Water and Irrigation Hazem Nasser said.

The Red-Dead project, the first phase of which will cost $900 million, seeks to provide Jordan with its water needs at reasonable prices, while at the same time prevent further shrinking of the Dead Sea.

Under the scheme, 70-80 million cubic metres (mcm) of water from the Red Sea will be desalinated annually at a desalination plant to be built north of Aqaba, Jordan’s only seaport.

“A total of 30mcm will be channelled to Aqaba to stop providing the city with water from the Disi Water Conveyance Project… while 100mcm of brine generated from the desalination process will be dumped in the Dead Sea to stop it from dwindling,” Nasser told reporters at a press conference.

Jordan signed a memorandum of understanding (MoU) with Israel and Palestine in December last year to implement the first phase of the Red-Dead project. Under the MoU, Palestine will receive 30mcm of freshwater to cover its water deficit, while Israel will buy its share of 50mcm of desalinated water from the project at cost value and sell Jordan the same amount of water in the northern part of the Jordan Valley at a cost of JD0.27 per cubic metre.

“The water which Jordan will receive from Israel is the same water it has been receiving since 1994. It will come from Lake Tiberius and its quality will be better than water from the Jordan River or the King Abdullah Canal,” Nasser told The Jordan Times.

He reiterated that the project is a purely Jordanian scheme, which will be built on Jordanian soil and run by the government of Jordan.

AMMAN — The Lower House is scheduled to start debating the draft 2014 state budget next week, after its Financial and Economic Committee completed deliberations and sent its recommendations to the MPs.

After holding 60 meetings with different government entities over the past few weeks, the House panel concluded its report on the bill, submitting 25 recommendations to the government for examination during the upcoming discussions under the Dome.

The committee recommended that the government draft a deficit law to cover the next five years, starting from 2015 to reach self-sufficiency by 2020.

The panel urged the government to speed up its efforts to collect Treasury funds — estimated at JD2 billion — and conclude all lawsuits against tax evaders and others who owe money to the state, expected to generate JD1 billion, calling on the authorities to aggressively combat tax evasion.

The government should also accelerate the implementation of alternative energy projects, according to the panel’s recommendations, which were made available to The Jordan Times.

The government submitted the draft budget to the Lower House in November 2013, with a 12.8 per cent expansion in spending and a deficit of around JD1.1 billion.

Public spending for 2014, according to main outlines of the draft budget law that was endorsed by the Cabinet, is estimated to reach JD8.096 billion, up by JD920 million over public expenditure re-estimated for 2013.

Public revenues before foreign assistance were estimated at JD5.831 billion, an 11.6 per cent increase compared with the JD5.226 billion estimated for 2013.

Overall public revenues, including foreign grants, are estimated to reach JD6.982 billion.

Budget planners project assistance from donor countries to increase by JD169 million or 17.3 per cent next year, from JD982 million re-estimated for 2013, to amount to JD1.151 billion.

As the re-estimated deficit for 2013 stands at JD968 million, it means that the projected financial gap in next year’s budget is expected to rise by nearly 15 per cent.

Analysts have criticised the government for what they described as the “unjustified expansion” in the state budget draft law for 2014, saying that the Finance Ministry should have prepared a tightened spending bill to reduce the deficit and control the growing public debt.

Also next week, the MPs will debate the draft law for the 2014 budget of independent government institutions.

AMMAN — Jordan is scheduled to sign a memorandum of understanding this month with a Chinese company for the exploration and utilisation of oil shale as part of the country’s efforts to increase dependence on local energy resources.

The Natural Resources Authority (NRA) has received the Cabinet’s approval to sign the memo with China’s Fushun Mining Group Co. Ltd., NRA Director General Mousa Zyoud told The Jordan Times on Tuesday.

Under the memo, the Chinese firm will conduct geological and geophysical studies over an 87-square-kilometre area in Wadi Al Naadiyeh in the central region, Zyoud said.

“The company will also assess the available quantities of oil shale during the study period, which will last for two years,” he added.

“If the studies prove that quantities are feasible, we will start negotiations with the company to prepare for signing a commercial agreement,” Zyoud said.

The memo is part of the government’s strategy to increase the contribution of oil shale to the energy mix to 14 per cent by 2020, according to Zyoud.

Jordan, which imports about 96 per cent of its energy needs annually, has about 40 billion tonnes of oil shale reserves, the fourth largest in the world, according to the NRA.

AMMAN –– Nearly two-thirds of the olive groves in northern Ajloun Governorate incurred damage during a snowstorm dubbed “Alexa” that hit the Kingdom last month, Agriculture Minister Akef Zu’bi said on Tuesday.

Around 60 per cent of the farms planted with olive trees were severely damaged by the blizzard, the minister said at a press conference, the Jordan News Agency, Petra, reported.

According to the National Centre for Agricultural Research and Extension, there are over 17 million olive trees in the country, nearly half of which are in the northern region.

Jordan is the world’s eighth largest producer of olive oil, exporting its product to several countries including Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the US.

The average per capita consumption of olive oil in Jordan stands at about 3.43 kilogrammes per year, and the country’s overall annual consumption stands at about 21,773 tonnes, according to official figures.

Meanwhile, Zu’bi said the ministry is mulling exporting agricultural products, fruits and vegetables to the Russian market, which he said equals the Eastern Europe market in terms of size.

“The Russian market would be an important venue for our national exports,” he said, indicating that officials from both sides have agreed to facilitate bilateral trade, Petra reported.

Jordanian exports of fruits and vegetables have seen a series of setbacks in recent years, mainly due to the instability in neighbouring Syria and Iraq.

Syria used to import over 30 per cent of the Kingdom’s produce.

Zu’bi noted that he recently visited the Jordan Customs Department to discuss technical issues related to exporting produce to Russia.

Asked about restrictions imposed on imports of certain agricultural products, he explained that the government takes two conditions into consideration for permitted imports: the products should meet public health standards and national production should not be negatively affected.

Zu’bi told reporters that the government has recently decided to increase the annual financial allocation of the Agriculture Credit Fund from JD10 million to JD60 million in a bid to boost the sector.

Loan limits to farmers will go up from JD10,000 to JD15,000 he said.

AMMAN — The country’s water sector needs $750 million during the next three years to meet the rising demand for water, aggravated by an ongoing influx of Syrian refugees, a senior government official said on Tuesday.

The Ministry of Water and Irrigation has formulated a “support plan” that proposes new water infrastructure projects to be implemented in case Syrians continue to take refuge in the Kingdom over the next few years, Water Minister Hazem Nasser told reporters at a press conference.

“The ministry has submitted its ‘support plan’ to international aid institutions to seek funding… if the funds are insufficient, the ministry will be forced to reduce its role and presence,” Nasser said, referring to water services provided to the refugees.

The minister highlighted that Syrian refugees’ direct and indirect cost on the water sector is estimated at $358 million per year.

“Water demand rose by 20 per cent due to hosting hundreds of thousands of Syrian refugees… we are operating the Disi Water Conveyance Project at 92 per cent of its capacity, which is a figure we planned to reach in three to four years,” he noted.

Nasser underscored that hosting thousands of Syrian refugees “ruined” the ministry’s strategies and plans, which were replaced by “emergency plans” formulated every summer.

During the past year, the water sector received $107 million in grants to sustain services in communities hosting Syrian refugees, particularly in the northern region, Nasser said.

The minister on Tuesday signed agreements worth 10 million euros for implementing water development projects in the northern governorates, where water resources are scarce.

Under the agreements, funded by the German Development Bank, new water wells will be drilled and existing ones will be rehabilitated in the northern and northeastern badia, according to Nasser.

In addition, the authorities will extend pipelines, conveyors and wastewater networks and purchase pump equipment.

The northern region suffers from an acute water shortage caused by limited resources, violations to main water lines and deteriorating networks, while the situation has worsened with the influx of Syrian refugees, according to ministry officials.

Over 70 per cent of the Syrian refugees in Jordan live amongst host communities, while the rest are accommodated at the Zaatari Refugee Camp in Mafraq Governorate and the Mreijeb Al Fhoud Camp in Zarqa Governorate.

AMMAN — The Jordan Food and Drug Administration (JFDA) conducted 1,461 inspections on food establishments last month, during which 33 food outlets were shut down, according to a JFDA statement issued on Tuesday.

The JFDA said warnings were issued to 657 other food outlets across the Kingdom in December 2013.

Most of the closures and violations were in restaurants in Irbid, 80km north of Amman, while Zarqa, 22km east of Amman, witnessed the lowest number of violations, the JFDA said, without elaborating on the number of violations in each city.

In addition, the JFDA destroyed more than 219.2 tonnes of food items, which were found unsuitable for human consumption, and seized 350 tonnes of imported foodstuff that will either be destroyed or sent back to the countries of origin.

The JFDA also conducted 220 inspection visits to pharmacies last month that led to the closure of seven, while five were referred to court and eight received warnings.

Moreover, it refused the entry of various types of donated medicine worth JD19 million because of issues related to their expiry date, according to the statement.

AMMAN — Aqaba was the latest stop for the National Goodwill Campaign, which presented humanitarian aid to 300 families in the Karama area and 31 scholarships for students across the governorate on Tuesday.

As part of the campaign’s winter activities in Aqaba, which will continue until Thursday, some 150 families in the villages of Diseh, Salhieh and Shakrieh will receive more assistance and benefit from a free medical day, the Jordan News Agency, Petra, reported.

Presenting the assistance during a visit to the governorate, some 330km south of Amman, HRH Princess Basma, president of the campaign’s higher committee, expressed pleasure at meeting with Aqaba residents to check on their situation and the problems they face.

Noting that local communities are the cornerstone for development, Princess Basma said change comes from young people, urging them to take the initiative and look for means to address the hardships and challenges their society faces.

She noted that the younger generation should be the main target of development and empowerment, citing the significance of public-private sector partnerships in the area of voluntary work, according to Petra.

The princess called for consolidating positive social values and shunning negative ones.

During her visit to the southern governorate, which has a population of over 139,000, Princess Basma listened to the local community’s needs, which include a comprehensive healthcare centre.

For his part, Aqaba Special Economic Zone Authority (ASEZA) Chief Commissioner Kamel Mahadin said ASEZA regards the Jordanian Hashemite Fund for Human Development (JOHUD) as a partner in fighting poverty and implementing the development process.

Mahadin announced the allocation of JD500,000 to establish a sports centre for youths in the Karama area.

Launched in 1991 by JOHUD, the National Goodwill Campaign has grown over the years to become synonymous with support for the poor and the marginalised.

AMMAN — Mobile holders in Jordan will be able to use their phones to pay for groceries, coffee and even taxi fares as of March under a project to be launched by the Central Bank of Jordan (CBJ).

Around 75 per cent of Jordanian adults do not have bank accounts, and accordingly do not have debit or credit cards, and use cash to settle their bills and purchase items and commodities.

Under the Jordan Mobile Payment project, cellphone owners, both Jordanians and foreigners living in the Kingdom, can open an e-wallet at any of the country's telecom operators, Middle East Payment Services, Emerging Markets Payments or their agents’ centres and banks, Maha Bahou, executive manager of the payment services department at the CBJ, told The Jordan Times.

“Those with e-wallets can use their mobiles to make money transfers... to other e-wallet users in Jordan," Bahou said on the sidelines of the Electronic and Mobile Payment Conference, where several experts looked into challenges and opportunities in the e-payment sector.

"Those with e-wallets can also withdraw any amount of money from any ATM in Jordan by scanning their mobile on the screen of the ATM," she added.

"They can also pay their bills by transferring the required amount from their e-wallet to the e-wallet of a shop, taxi driver or restaurant,” Bahou noted.

The CBJ will monitor all transactions conducted via mobile phones to ensure security for users, she said, adding that the programme was designed to protect users from any fraud attempts.

Operators or companies that issue e-wallets must abide by CBJ regulations on mobile payments and will have to deposit collateral at the CBJ that are equivalent to the amount of wallets they want to issue.

“If a telecom operator issues e-wallets with a total value of JD1 million, they will have to deposit a collateral of JD1 million at the CBJ. If the company goes bankrupt, the collateral will be used to compensate those who opened e-wallets,” Bahou explained.

“Anyone who holds a mobile phone, not necessarily a smart phone, and anyone who does not even have a bank account can open an e-wallet.”

Under the programme, a mobile holder who has an e-wallet and is a Zain Jordan subscriber for example can transfer money to a person with an e-wallet who has an Orange Jordan SIM card, she said.

The CBJ official added that the programme's partners have already imported some 374 devices with near field communication technology to distribute at several points of sales, such as restaurants, malls or stores.

“An e-wallet user can transfer money from his wallet to another via mobile to settle a payment, and can also scan his mobile over one of these devices that will automatically deduct the amount,” Bahou said, noting that many more devices will be available in the future.

The government is likely to use the programme to transfer its cash compensations to beneficiaries for lifting the fuel subsidy or other types of subsidies. Even social security pensions can be sent to e-wallets as not all people have bank accounts but almost all carry mobiles, she added.

Mobile penetration in Jordan reached 155 per cent by the end of September 2013, with 10.227 million subscriptions, according to official figures.

At a later stage, users of the service will be able to make international transfers, Bahou said, noting that there will be a limit on how much they can spend to prevent any money laundering attempts.

Organised by the ICT Association of Jordan (int@j), Tuesday's conference was held in cooperation with CBJ and the Ministry of Information and Communications Technology.

Several speakers addressed issues of security, e-commerce, electronic and mobile payments, as well as related challenges and trends in the region.

AMMAN — Security situation and growing terrorism activities in the region are major concerns, senior government officials and MPs agreed on Tuesday.

Accordingly, some lawmakers called for increasing appropriations for the military and the security agencies to carry out their duties efficiently.

During a meeting between the government and the Watan (Homeland) bloc in the Lower House on Tuesday, Prime Minister Abdullah Ensour said the deteriorating security situation in Iraq’s Anbar province across the Kingdom’s eastern border is a major concern for the government.

“Jordan’s security is part of the regional stability,” he said.

His remarks came in response to fears expressed by several MPs during the meeting.

The MPs called on the government to support the army and security agencies to ensure that they are well equipped to face such challenges.

Among the suggestions, the legislators called for opening recruitment for more people in these agencies to ease the pressure on them, which has been mounting over the past few years with the escalating regional turmoil.

The lawmakers said the country needs more soldiers and security personnel to “close any gap in the ongoing efforts to prevent infiltration of terrorists to the Kingdom from Syria and Iraq”.

At the internal level, the premier stressed that the government will pursue its “soft, but firm, power” in dealing with citizens.

Minister of Interior Hussein Majali said that the level of coordination between all concerned agencies in the security situation has increased and will continue the same trend in the future.

The authorities have drawn up a “joint plan” to ensure security and stability in the country, he said, noting that previously, each security agency used to have its own plan, but, “now, we all work under one blueprint”. 

AMMAN — His Majesty King Abdullah and Russian President Vladimir Putin on Tuesday asserted the distinguished relations between Jordan and Russia and discussed means to boost them, a Royal Court statement said.

In a telephone call, the two leaders also discussed the latest developments in the Middle East, especially those pertaining to the Syrian crisis as well as the preparations for the Geneva II conference on Syria, besides efforts to achieve peace between the Palestinians and the Israelis, in pursuance of international resolutions and the two-state solution.

His Majesty extended his best wishes to the Russian people on the occasion of Christmas. He also extended his condolences to Putin over the loss of life in the recent suicide bombings in the city of Volgograd.

King Abdullah expressed Jordan’s denouncement of the attacks during which more than 30 people were killed.